Header cover image

U.S. Healthcare Sector Analysis

UpdatedOct 31, 2023
DataAggregated Company Financials
Companies1634
  • 7D-2.5%
  • 3M-9.2%
  • 1Y-9.2%
  • YTD-10.9%

Over the last 7 days, the Healthcare industry has dropped 3.7%, driven by Johnson & Johnson declining 2.9%. However, the industry is down 9.2% over the past year. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

Has the U.S. Healthcare Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 31 Oct 2023US$5.6tUS$2.8tUS$99.5b24.7x55.9x2x
Thu, 28 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.7x2.1x
Sat, 26 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Mon, 24 Jul 2023US$6.2tUS$2.7tUS$110.9b26.9x55.5x2.2x
Wed, 21 Jun 2023US$6.0tUS$2.7tUS$109.9b26.2x54.8x2.2x
Fri, 19 May 2023US$5.9tUS$2.7tUS$110.8b24.2x53.6x2.2x
Sun, 16 Apr 2023US$6.0tUS$2.5tUS$123.8b24.2x48.3x2.4x
Tue, 14 Mar 2023US$5.6tUS$2.5tUS$123.0b23.8x45.4x2.3x
Thu, 09 Feb 2023US$6.0tUS$2.5tUS$132.1b23.8x45.1x2.4x
Sat, 07 Jan 2023US$6.0tUS$2.5tUS$135.4b22.7x44.4x2.5x
Mon, 05 Dec 2022US$6.2tUS$2.4tUS$133.7b24.1x46.2x2.5x
Wed, 02 Nov 2022US$5.9tUS$2.4tUS$149.1b23.6x39.6x2.4x
Fri, 30 Sep 2022US$5.5tUS$2.4tUS$156.1b21.3x35.6x2.3x
Sun, 28 Aug 2022US$5.8tUS$2.4tUS$157.1b22.9x36.9x2.4x
Tue, 26 Jul 2022US$5.9tUS$2.6tUS$164.6b24.9x35.9x2.3x
Thu, 23 Jun 2022US$5.6tUS$2.6tUS$165.4b23.4x33.9x2.2x
Sat, 21 May 2022US$5.8tUS$2.6tUS$165.0b25.8x35.2x2.2x
Mon, 18 Apr 2022US$6.5tUS$2.5tUS$175.5b28.8x37x2.6x
Wed, 16 Mar 2022US$6.2tUS$2.5tUS$170.8b27.6x36.2x2.5x
Fri, 11 Feb 2022US$6.3tUS$2.5tUS$165.1b29.7x38.3x2.6x
Sun, 09 Jan 2022US$6.5tUS$2.4tUS$145.2b31.5x44.9x2.7x
Tue, 07 Dec 2021US$6.5tUS$2.4tUS$146.5b31x44.4x2.7x
Thu, 04 Nov 2021US$7.0tUS$2.4tUS$139.7b35.2x50.3x3x
Sat, 02 Oct 2021US$6.6tUS$2.3tUS$119.9b34.6x55.2x2.9x
Mon, 30 Aug 2021US$6.9tUS$2.3tUS$121.1b32.8x57.3x3x
Tue, 06 Jul 2021US$6.6tUS$2.3tUS$113.6b32.4x57.7x2.9x
Fri, 09 Apr 2021US$6.0tUS$2.4tUS$93.5b29x64.1x2.5x
Thu, 31 Dec 2020US$5.8tUS$2.3tUS$87.0b29.3x66.5x2.5x
Price to Earnings Ratio

48.6x


Total Market Cap: US$5.0tTotal Earnings: US$103.3bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 50.1x202120222023
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 55.9x which is higher than its 3-year average PE of 50.1x.
  • The 3-year average PS ratio of 2.5x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 7.4% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-1.24%
Healthcare-2.45%
Healthcare Services0.32%
Biotech-1.46%
Pharma-2.35%
Healthtech-3.08%
Medical Equipment-3.69%
Life Sciences-7.64%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry which is trading above its 3-year average PE ratio of 56.8x.
    • Analysts are expecting annual earnings growth of 19.7%, which is higher than its past year's earnings growth of 6.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 20% per year.
  • In contrast, the Healthcare Services industry is expected to see its earnings grow by 14% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
UNH UnitedHealth GroupUS$529.991.6%
+US$7.8b		-4.5%PE22.6x
BGNE BeiGeneUS$186.6110.6%
+US$1.9b		10.5%PS10.9x
ICLR ICONUS$238.136.9%
+US$1.3b		20.4%PE38.2x
CI Cigna GroupUS$305.221.4%
+US$1.2b		-5.5%PE13.6x
IBRX ImmunityBioUS$3.08115.4%
+US$1.1b		-44.0%PS3473.3x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & Enterprise
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

LLY

US$565.71

Eli Lilly

7D

-1.9%

1Y

56.2%

Calculating The Intrinsic Value Of Eli Lilly and Company (NYSE:LLY)

Oct 30
Calculating The Intrinsic Value Of Eli Lilly and Company (NYSE:LLY)

JNJ

US$147.03

Johnson & Johnson

7D

-2.9%

1Y

-15.5%

The Litigation Joker In Johnson & Johnson's Deck

Oct 30

BGNE

US$186.61

BeiGene

7D

10.6%

1Y

10.5%

IBRX

US$3.08

ImmunityBio

7D

115.4%

1Y

-44.0%

CHE

US$562.24

Chemed

7D

10.0%

1Y

20.4%

BMY

US$51.25

Bristol-Myers Squibb

7D

-8.5%

1Y

-33.8%

BPMC

US$54.34

Blueprint Medicines

7D

23.1%

1Y

4.8%

ICLR

US$238.13

ICON

7D

6.9%

1Y

20.4%

TMO

US$434.11

Thermo Fisher Scientific

7D

-6.0%

1Y

-15.5%

ALGN

US$186.74

Align Technology

7D

-29.7%

1Y

-3.9%

AMGN

US$263.19

Amgen

7D

-3.6%

1Y

-2.6%

DHR

US$185.10

Danaher

7D

-9.3%

1Y

-26.5%

Why Danaher Is One Of My Favorite Long-Term Investments

Oct 26

CI

US$305.22

Cigna Group

7D

1.4%

1Y

-5.5%

HCA

US$223.34

HCA Healthcare

7D

-7.3%

1Y

2.7%

These 4 Measures Indicate That HCA Healthcare (NYSE:HCA) Is Using Debt Extensively

Oct 26
These 4 Measures Indicate That HCA Healthcare (NYSE:HCA) Is Using Debt Extensively

DGX

US$129.41

Quest Diagnostics

7D

6.6%

1Y

-9.9%

UNH

US$529.99

UnitedHealth Group

7D

1.6%

1Y

-4.5%

UnitedHealth Group: Be Prepared For The Next Buying Opportunity

Oct 24